Country Risk Associated with Overseas Business Investment
First written in FY2016. 10 of 28 entries say "Mitigated", first in FY2021-Q1. Latest entry: FY2026.
SRA Holdings moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 5 of 12 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「During the consolidated fiscal year, the company recorded a ¥223 million provision for allowance for doubtful accounts related to overseas business investments and financing. The Group has identified the promotion of global business as one of its growth strategies and will continue to focus on overseas business investments and financing, while proceeding with greater caution in assessing their impact on the Group's performance.」
Although a ¥223 million provision for allowance for doubtful accounts related to overseas business investments and financing was recorded, the amount was smaller than the ¥1,797 million extraordinary loss in the previous fiscal year, and the company indicated that it would assess the impact of investments and financing with greater caution. - 2026-05-13MitigatedEarnings forecast revision
「In addition to the increase in operating income, the company recorded a foreign exchange loss of ¥171 million in the previous consolidated fiscal year, whereas it recorded a foreign exchange gain of ¥722 million in the current consolidated fiscal year due to the weaker yen. As a result, ordinary income was ¥9,500 million, up 16.9% year on year.」
Foreign exchange gains replaced foreign exchange losses, improving the earnings impact of currency movements from the previous fiscal year. The company continued to refer to the effect of currency movements. - FY2026-H1MitigatedAnnual report
「Ordinary profit increased by ¥866 million, or 27.6% year on year, to ¥4,008 million, partly because the foreign exchange loss fell to ¥5 million from ¥699 million in the same period of the previous year, in addition to the increase in operating profit.」
The foreign exchange loss fell sharply from ¥699 million in the same period of the previous year to ¥5 million, reducing the adverse impact of exchange rate movements on ordinary profit. - FY2025MaterialisedAnnual report
「During the consolidated fiscal year, the company recorded ¥1,797 million in extraordinary losses related to overseas business investments and financing, among other items.」
In connection with overseas business investments and financing, the company recorded a ¥210 million loss on valuation of investment securities and a ¥1,587 million provision for allowance for doubtful accounts, causing investment and financing risks to materialize as actual losses. - FY2025-H1MaterialisedAnnual report
「Ordinary profit decreased by ¥1,462 million, or 31.8% year on year, to ¥3,142 million, partly because the sharp appreciation of the yen in the foreign exchange market resulted in a foreign exchange loss of ¥699 million, compared with a foreign exchange gain of ¥1,235 million in the same period of the previous year.」
The appreciation of the yen resulted in a foreign exchange loss of ¥699 million, reversing the profit and loss position from the foreign exchange gain of ¥1,235 million in the same period of the previous year. - FY2024-Q3Foreign exchange gains decreased year on yearAnnual report
「Ordinary profit increased by ¥337 million, or 6.1% year on year, to ¥5,876 million, despite the foreign exchange gain of ¥642 million resulting from the yen weakening against the end of the previous consolidated fiscal year being down from ¥1,175 million in the same period of the previous year. The ordinary profit margin on revenue was 17.5%, compared with 17.7% in the same period of the previous year.」
Although the weaker yen generated a foreign exchange gain, it decreased from ¥1,175 million in the same period of the previous year to ¥642 million. The impact of exchange rate movements on profit and loss continues. - FY2024-Q2Foreign exchange gains decreased year on yearAnnual report
「Ordinary profit decreased by ¥416 million, or 8.3% year on year, to ¥4,604 million, partly because the foreign exchange gain of ¥1,235 million, generated by a sharp weakening of the yen in the foreign exchange market, was down from ¥2,199 million in the same period of the previous year. The ordinary profit margin on revenue was 20.4%, compared with 24.0% in the same period of the previous year.」
Although the weaker yen generated a foreign exchange gain, it decreased from ¥2,199 million in the same period of the previous year to ¥1,235 million, and ordinary profit fell 8.3% year on year. - FY2024-Q1Foreign exchange gains decreased year on yearAnnual report
「Ordinary profit decreased by ¥9 million, or 0.4% year on year, to ¥2,342 million, partly because the foreign exchange gain declined to ¥902 million from ¥1,032 million in the same period of the previous year, despite a sharp weakening of the yen in the foreign exchange market.」
The impact of exchange rate movements continued to be reflected in profit and loss, but the foreign exchange gain decreased from ¥1,032 million in the same period of the previous year to ¥902 million. The impact of foreign exchange risk itself continues. - FY2023-Q3Foreign exchange gains increased year on yearAnnual report
「Ordinary profit increased by ¥1,324 million, or 31.4% year on year, to ¥5,539 million, partly because the company recorded a foreign exchange gain of ¥1,175 million, compared with ¥302 million in the same period of the previous year, as the yen remained weak against the end of the previous consolidated fiscal year.」
The impact of exchange rate movements on profit and loss increased from a foreign exchange gain of ¥302 million in the same period of the previous year to ¥1,175 million. - FY2023-Q2Foreign-exchange gains increasedAnnual report
「Ordinary profit increased by ¥2,398 million, or 91.5% year on year, to ¥5,021 million, partly because the company recorded a foreign exchange gain of ¥2,199 million, compared with ¥62 million in the same period of the previous year, as the yen weakened in the foreign exchange market. The ordinary profit margin on revenue improved to 24.0%, from 13.8% in the same period of the previous year.」
The impact of exchange rate movements on profit and loss increased from a foreign exchange gain of ¥62 million in the same period of the previous year to a foreign exchange gain of ¥2,199 million. - FY2023-Q1MitigatedAnnual report
「Ordinary profit increased by ¥1,184 million, or 101.5% year on year, to ¥2,352 million, as the foreign exchange gain rose to ¥1,032 million, compared with a foreign exchange loss of ¥24 million in the same period of the previous year, following a sharp weakening of the yen in the foreign exchange market.」
The foreign exchange loss of ¥24 million in the same period of the previous year turned into a foreign exchange gain of ¥1,032 million in the first quarter, eliminating the adverse impact of exchange rate movements on profit and loss. - FY2022-Q3MitigatedAnnual report
「Ordinary profit increased by ¥1,008 million, or 31.4% year on year, to ¥4,214 million, partly because the company recorded a foreign exchange gain of ¥302 million, compared with a foreign exchange loss of ¥337 million in the same period of the previous year, as the yen weakened in the foreign exchange market.」
The foreign exchange loss of ¥337 million in the same period of the previous year turned into a foreign exchange gain of ¥302 million during the nine-month period ended the third quarter, eliminating the adverse impact of exchange rate movements on profit and loss. - FY2022-Q2MitigatedAnnual report
「Ordinary profit increased by ¥485 million, or 22.7% year on year, to ¥2,622 million, partly because the company recorded a foreign exchange gain of ¥62 million, compared with a foreign exchange loss of ¥189 million in the same period of the previous year, as the yen weakened in the foreign exchange market.」
The foreign exchange loss of ¥189 million in the same period of the previous year turned into a foreign exchange gain of ¥62 million during the six-month period ended the second quarter, eliminating the adverse impact of exchange rate movements on profit and loss. - FY2022-Q1MitigatedAnnual report
「Ordinary profit increased by ¥206 million, or 21.5% year on year, to ¥1,167 million, partly because the foreign exchange loss was limited to ¥24 million, compared with ¥66 million in the same period of the previous year, as exchange rate movements were limited.」
The foreign exchange loss decreased from ¥66 million in the same period of the previous year to ¥24 million, reducing the impact on profit and loss. - FY2021MitigatedAnnual report
「During the consolidated fiscal year, the company recorded a ¥306 million equity-method investment loss and a ¥404 million loss on valuation of investment securities. The company stated that it would proceed while assessing the impact on the Group's performance with even greater caution.」
Losses related to overseas investments and financing continued to arise, but were smaller than the substantial valuation and impairment losses recorded in the previous consolidated fiscal year. The company indicated that it would assess the impact of investments and financing with greater caution. - FY2021-Q3WorsenedAnnual report
「Ordinary profit decreased by ¥110 million, or 3.3% year on year, to ¥3,206 million, partly because the foreign exchange loss increased to ¥337 million, from ¥83 million in the same period of the previous year, as exchange rate movements widened compared with the previous year.」
Foreign exchange risk materialized as a ¥337 million foreign exchange loss, up from ¥83 million in the same period of the previous year. - FY2021-Q2MitigatedAnnual report
「Ordinary profit increased by ¥180 million, or 9.2% year on year, to ¥2,137 million, partly because the foreign exchange loss was limited to ¥189 million, compared with ¥225 million in the same period of the previous year, as the impact of the foreign exchange market was limited compared with the previous year.」
The foreign exchange loss decreased from ¥225 million in the same period of the previous year to ¥189 million, reducing the year-on-year impact of exchange rate movements on profit and loss. - FY2021-Q1MitigatedAnnual report
「Ordinary profit increased by ¥286 million, or 42.4% year on year, to ¥961 million, partly because the foreign exchange loss was limited to ¥66 million, compared with ¥222 million in the same period of the previous year, as exchange rate movements were limited. The ordinary profit margin on revenue improved to 9.9%, from 6.7% in the same period of the previous year.」
Although foreign exchange risk associated with overseas business investments remains, the foreign exchange loss decreased from ¥222 million in the same period of the previous year to ¥66 million. - FY2020WorsenedAnnual report
「During the consolidated fiscal year, the company recorded a ¥3,958 million loss on valuation of investment securities and a ¥1,039 million impairment loss on intangible fixed assets.」
With respect to overseas business investments and financing, substantial valuation losses and impairment losses materialized due to deteriorating performance at investee companies and sluggish local stock markets, among other factors. - FY2020-Q3MaterialisedAnnual report
「Foreign exchange loss － 83」
Foreign exchange risk materialized as a ¥83 million foreign exchange loss during the nine-month consolidated period ended the third quarter. - FY2020-Q2MaterialisedAnnual report
「Foreign exchange loss － 225」
Foreign exchange risk materialized as a ¥225 million foreign exchange loss during the six-month consolidated period ended the second quarter. - FY2020-Q1MaterialisedAnnual report
「Foreign exchange loss － 222」
Foreign exchange risk materialized as a ¥222 million foreign exchange loss in the first quarter, and ordinary profit fell 32.1% year on year. - FY2019-Q3MaterialisedAnnual report
「Due to changes in the fair value of securities and investment securities, the valuation difference on available-for-sale securities decreased by ¥457 million to ¥196 million. Due to exchange rate fluctuations, the foreign currency translation adjustment decreased by ¥163 million to ¥282 million.」
Exchange rate fluctuations were reflected in the financial figures as a ¥163 million decrease in the foreign currency translation adjustment. The text does not describe this as a loss. - FY2018MaterialisedAnnual report
「Foreign exchange loss － 253」
Foreign exchange risk associated with overseas business investments materialized as an actual loss of ¥253 million in foreign exchange losses during the fiscal year. - FY2017RestatedAnnual report
「When making business investments, the company conducts preliminary investigations and engages in thorough discussions with the management of investee companies. It also regularly monitors business progress after investing. However, if unavoidable country risks associated with overseas businesses arise due to sudden social unrest beyond the company's expectations, deteriorating market conditions, exchange rate fluctuations or differences in political and cultural conditions, institutions, laws and business practices, or if expected returns cannot be secured and losses arise because of changes in the management of investee companies, changes in capital structures or shifts in business strategies, this may affect the company's performance.」
The company describes preliminary investigations and progress monitoring for overseas investments, while continuing to identify country risks arising from exchange rates, differences in political conditions and institutions, and changes affecting investee companies. - FY2017-Q2MaterialisedAnnual report
「In terms of profit and loss, operating profit increased to ¥1,781 million, up 15.8% year on year, due to higher gross profit resulting from higher revenue and improved profit margins. However, as a result of recording a foreign exchange loss of ¥374 million, ordinary profit was ¥1,476 million, down 11.7% year on year, and net income attributable to owners of the parent was ¥933 million, down 3.3% year on year.」
Foreign exchange fluctuations related to overseas business investments materialized as an actual loss of ¥374 million in foreign exchange losses during the six-month period ended the second quarter. - FY2017-Q1MaterialisedAnnual report
「As a result of recording a foreign exchange loss of ¥306 million, ordinary profit was ¥531 million, down 23.1% year on year, and net income attributable to owners of the parent was ¥328 million, down 19.1% year on year.」
The existing foreign exchange risk associated with overseas business investments materialized as an actual loss of ¥306 million in foreign exchange losses during the quarter. - FY2016First statedAnnual report
「If unavoidable country risks associated with overseas businesses arise due to sudden social unrest beyond the company's expectations, deteriorating market conditions, exchange rate fluctuations or differences in political and cultural conditions, institutions, laws and business practices, or if expected returns cannot be secured and losses arise because of changes in the management of investee companies, changes in capital structures or shifts in business strategies, this may affect the company's performance.」
While expanding overseas, the company describes the possibility of losses arising from differences in political conditions, institutions, exchange rates and culture, as well as changes affecting investee companies.